Consumers paid £430 for a comprehensive motor insurance policy in quarter two of 2021
The average motor insurance premium has fallen by £38 in the first six months of 2021, meaning that the average price of motor cover has reached a new five-year low, according to research by the ABI.
Its Motor Insurance Premium Tracker is a market survey that explores the price consumers pay for their motor insurance, rather than looking at the price they were quoted.
The Tracker’s latest figures, published today (5 August 2021), revealed that in the second quarter of 2021, the average price paid for a comprehensive motor insurance policy was £430 – this is £6 less than consumers paid in 2021’s Q1 and £30 less than drivers paid in quarter two of 2020.
This marks a year-on-year decrease of 7%.
The ABI added that Q2’s £430 figure is the lowest comprehensive motor insurance premium recorded in the last five years, since quarter one in 2016.
The trade association attributed this premium decline to insurers passing on cost savings resulting from fewer claims during the UK’s coronavirus-related lockdowns, where fewer cars were on the roads.
These lower premiums come despite “continued cost pressures for insurers of rising repair bills”, the ABI continued.
Laura Hughes, the ABI’s manager of general insurance, said: “The fall in the average motor premium clearly shows that millions of drivers continue to benefit from cost savings made by insurers during the lockdowns.
“It will be interesting to see if there is a rise in motor claims as we emerge from the pandemic and road traffic continues to increase.
“We will also be watching closely the impact of the Official Injury Claims portal launched in May, which will simplify the whiplash claims process, while ensuring proportionate compensation for genuine claimants.
“And while underlying cost pressures around rising repair bills will remain, the market will stay competitive, enabling motorists to shop around for the best deal for their needs.”
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